Biotech has always been seen as a risky business. Sometime the product isn’t greatly accepted within the market and other times the product doesn’t meet the results, so therefore it is very easy for products to fail. On the other hand, investors within biotech can make massive amounts of money when a product is successful. The key is to look for products that have the possibility to grow and show stability opposed to dramatic track records. In this article, the top five biotech companies currently are going to be analyzed due to their expected future growth.
Celgene Corporation is a biotech company that works on cancer and inflammatory diseases. This company uses two strategies to make it successful. They work with other large drug companies because this helps get the product on the market and gain popularity. Also this company develops a lot of its own products. They have a steady increasing revenue and there has been a lot of growth in their recent quarter. We have seen their stock steadily rise in 2017 after their sharp decline in October of 2017, decreasing more than 30%. This happened because they canceled their development of a Crohn’s disease treatment, and this caused worse-then-anticipated third quarter results. The recent declines also present a good buying opportunity within the market, and this can also be proven by the company’s long-term record of success.
Gilead Sciences Inc. has been growing at a very high rate over the last couple years. The company is well known for their success within treating hepatitis C and they play a dominant role in HIV treatments. There has been an increase in their revenues and income within the last couple years. At first the company entered a decline price channel at $64 but then there was a sharp turn of events as they started to experience high volume breakouts. The stock has reached a value of $90 in 2018, and since then they have boiled down to their current price of $81.73. Regardless of some of the uncertainty within the company, there is a potential product for HIV treatment that is being reviewed by the Food and Drug Administration, and a decision will be released within the month.
Exelixis Inc is a company that like to focus their efforts on cancer care. Some of their drugs have been geared toward anti-tumor and kidney cancer. They also deliver positive results when it comes to their earnings. In the start of 2017, the companies stock had a breakout and it remained like that for a decent part of the year. Then the stock took a turn for the best and broke upward and it continued to keep moving up all the way into December, regardless of the volatility. The stock hasn’t been the most consistent and has experienced ups and downs, but its current trading price is valued at $30. On the other hand, investors were pleased to see a new deal that occurred with Takeda Pharmaceutical.
Enzo Biochem Inc. offers therapy for a wide range of diseases including cancer, cardiovascular disease, diabetes, and infectious diseases. Since 2016 the stock has consistently risen, and sales broke out in the 2017 and another breakout occurred later in that year. Since then the stock has formed its new base. Enzo has a market cap of alittle over $341 million. The company has experienced a lot of volatility, and this is credited to the fact that it is one of the smallest companies we are analyzing.
AbbVie Inc. created Humira, which is a drug that is used to treat autoimmune issues. In addition to this treatment they also have products to help with leukemia and hepatitis C. They’re also responsible for treatments that suppress HIV. The company is also involved in testosterone-replacement and they have developed drugs for multiple sclerosis. They have had success within their stock as it moves in an upward direction since 2017. The company also went head to head with Amgen Inc. as they tried to launch a biosimilar version of Humira, and they successfully delayed Amgen’s release of the drug. Their shares spiked to an all time high of $25 in January but have boiled down since then to their current price of $115.